If you drive for work, your car is probably your biggest deduction. Here's how to claim it properly, and what clients can't cost you.
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By the Nomo team · Last reviewed 24 September 2026
Reps get cars in more ways than most workers, and the rules follow the car.
| Your set up | What you can claim |
|---|---|
| Your own car | Work trips by cents per km (up to 5,000 km) or the logbook method |
| Your own car plus a car allowance | Declare the allowance as income, then claim your actual work use, not the allowance |
| A company car | No running costs, because you didn't pay them |
| Novated lease or salary sacrifice | No running costs, fuel included. Parking and tolls on work trips can still count |
The novated lease one catches a lot of people. You don't own or lease the car for tax purposes, so fuel you pay for isn't claimable, and the ATO data-matches novated leases. Details under vehicles that aren't yours.
Home to your first client depends on whether you have a regular workplace. Reps who work from a territory with no fixed base, visiting a web of clients each day, may meet the ATO's itinerant work indicators, and then home trips can count. Reps who report to an office usually don't. See driving between job sites.
Cents per km stops at 5,000 work km per car. A rep on the road every day can pass that by March. Here's how the two methods compare for one example year:
| Example (illustrative amounts) | Cents per km | Logbook |
|---|---|---|
| 20,000 km driven, 12,000 of them for work (60% work use), $12,000 of car costs for the year | 5,000 km × 91c = $4,550 | 60% × $12,000 = $7,200 |
The logbook needs 12 continuous weeks that represent your usual travel, plus receipts for the car costs you claim. It then lasts up to 5 years. See the logbook method and the cents per km calculator.
Nomo records odometer readings, works out your work use percentage from the trips you've sorted, and produces a 12 week logbook report. See Nomo's car logbook.
Gift rules aren't the same for every sales job. Real estate agents entitled to commission can claim gifts for work purposes. See real estate agent tax deductions.
From 2026–27, employees can take up to $1,000 for work expenses with no receipts. A rep with real work kilometres in their own car will usually beat it: 1,100 work km at 91c is already $1,001. Reps with a company car or a novated lease might not, so it's worth checking. Run your own numbers in the standard deduction calculator.
A rep's day is five to ten short drives. Nomo records each one in the background, you tag it Client meeting with a swipe, and the km and estimated deduction add up for the year. Parking and toll receipts sit alongside. Nomo is an Australian tax deduction and mileage/work kilometre tracking app for PAYG employees and sole traders.
Each drive recorded while you're on the road.
Tag it Client meeting, Delivery or Pickup.
The year's work km in one place.
See the mileage tracker.
Commission-only reps and manufacturer's agents on an ABN claim their car and costs as business expenses, in the business section of their return. See sole trader tax deductions.
Yes. Declare the allowance as income, then claim your actual work use by cents per km or a logbook.
No. You can't claim running costs on a novated lease or salary sacrificed car. Parking and tolls on work trips can count.
No. Food and drink with clients is entertainment, which employees can't claim.
Not as an employee in sales and marketing, according to the ATO's guide.
Above 5,000 work km a year, a logbook usually claims more, because cents per km is capped at 5,000 km per car.
No. Business clothes are conventional clothing.
Every client visit, counted.
Work trips tagged as you drive, all year. 14 days free, no card needed.
Start 14-day free trialBy the Nomo team · Last reviewed 24 September 2026. We check these pages against current ATO guidance and update them when the rules change.
General information only, not tax advice. Rules change and everyone’s situation is different, so check ato.gov.au or talk to a registered tax agent about your situation. Nomo is a record keeping app, not a registered tax agent.